What investment trends will lead the way in 2022?

The 2022 cash flow will continue to flow into stocks, while new areas such as Metaverse, Memecoin and low-cost trading apps will become the main investment trends.

Stock trading and financial investment apps are becoming more and more popular and becoming a trend

Cash flow in 2022 will continue to flow into securities and businesses applying environmental, social and governance principles (ESG), while new areas such as Metaverse (virtual universe), Memecoin and apps low-cost transactions will increase their attraction and become the main investment trends of the year.

2021 is the time when the global investment market recovers and rushes to recover what was lost in 2020, after being knocked down by the Covid-19 pandemic. Many world stock markets have set new records as the global economy recovered and incomes boomed as countries launched a series of large-scale fiscal stimulus packages.

The year 2021 will witness the emergence of many new investment trends. In the midst of the pandemic, investors have sought out strange lands. 2021 also sees a rain of money pouring into virtual currencies Memecoin, NFT and Metaverse.

For 2022, the following investment trends are expected by Forbes and The National (of the Middle East).

Invest in a basket of stocks and ETF products

Forbes’ consultants recommend that you avoid buying a single stock code. When the market rallies, it is easy to have the FOMO effect (the psychological effect of fear of missing opportunities when the market rallies) and investors rush to the next “hot” stocks, possibly emerging stocks. an initial public offering (IPO) or a stock that is rumored to be going up in price.

Instead, investors need to be aware of investing in a basket of securities (investing by index) to limit market abuse and manipulation. A basket is a collection of securities that can be traded in a single order. The ingredients in the basket are selected and based on the recommendations of experts, or customized according to the preferences of the investors.

The trend of investment in ESG enterprises is expected to develop strongly and become the mainstream in global investment trends, especially in the context that the world is making efforts to respond to the climate crisis.

Two types of securities baskets are recommended for 2022: a multi-asset basket with low risk and a diversified industry basket with medium risk.

Accordingly, investors with low risk appetite can choose a basket of many assets. This can be a combination of investments in stocks, bonds and ETF products. Rebalancing the basket of securities helps to combat concentration risks and market volatility. Earnings are often slow, but steady, and meet long-term financial goals.

For the diversified industry rotation basket, the determination of the basket is mainly based on the economic situation and development of each different industry. For example, pharmaceutical stocks can make good profits during the pandemic, but at other times, “defensive” stocks can rise.

Investing in ESG businesses is more defined

The Covid-19 pandemic was identified as a catalyst for an explosion in investment trends in ESG businesses. According to a Morningstar report, US sustainable investment funds attracted record inflows of $21.5 billion in the first quarter of 2021, higher than the quarterly record of $20.5 billion of 2020 and 5 times higher than the results of the first quarter of 2019.

Globally, sustainability funds raised a record $508 billion in investment capital in the first three quarters of 2021, while the portfolio of assets under management grew to 3.9 billion USD at the end of September 2021.

The trend of investment in ESG enterprises is expected to develop strongly and become the mainstream in global investment trends, especially in the context that the world is making efforts to respond to the climate crisis.

Metaverse will prevail

As the biggest idea in the field of technology in the past year, the Metaverse (virtual universe) is also considered the earthquake in the digital field. Metaverse, with its focus on multiple experiences, environments and virtual assets, has attracted strong investment resources during the digital transformation driven by the pandemic.

Simply put, Metaverse is a huge public cyberspace built on the intersection of virtual and augmented reality. It promises an immersive world where millions of users, or their digital avatars, can engage in a wide range of activities as they socialize, work, and play.

If trust is placed in the leading technology companies (Big Tech) such as Amazon, Apple, Facebook, Microsoft and Google, then Metaverse will be the future of the Internet. Big Tech is entering this promising market. In October 2021, Facebook decided to rebrand to Meta. This move shows that they are focusing more and more on Metaverse. Microsoft, Walt Disney, Apple and Nike have also poured billions of dollars into Metaverse technology, a market that is predicted to grow to $800 billion by 2024, from $500 billion in 2021.

For investors, 2022 could be their chance to enter the world of Metaverse. Billionaire Bill Gates, Microsoft co-founder predicts, Metaverse can master office meetings in the next 2-3 years. The Covid-19 pandemic has “revolutionized” the workplace, as many companies make it possible for employees to work remotely. Those changes will accelerate in the coming years, and billionaire Bill Gates thinks telecommuting will bring more people closer than the Metaverse.

Memecoin continues to explode

On the momentum of the virtual currency boom in 2021, Memecoin is forecast to continue to attract a large amount of investment capital in 2022. Although there is no unified understanding, but when it comes to Memecoins, they are identified as coins. Virtually inspired by popular images on the Internet or events that take place in reality. Unlike virtual currencies with numbers like Bitcoin, Ethereum, Memecoin was born mainly for the purpose of entertainment and players determine the mood to lose everything at any time.

The world is circulating as many as 124 different Memecoins, but according to CoinMarkatCap.com, Dogecoin (Doge) and Shiba Inu (Shib) are at the top of the category. In fact, both Doge and Shib are inspired by the image of the dog Shiba Inu. Currently, according to CoinMarketCap, these two Memecoins have accumulated a large enough amount to join the basket of the top 15 cryptocurrencies in the world in terms of market capitalization.

As Generation Y (early 80s to mid-1990s) and Generation Z (born 1995) investors were fascinated by the high-return low-cap game, market capitalization The market for Memecoins like Doge and Shib has grown significantly, to $23 billion and $20 billion respectively on December 22, 2021.

Memecoin has gained its current popularity due to the attraction of famous people on social networks. Billionaire Elon Musk – CEO of electric car company Tesla, rapper Snoop Dogg, rock star Gene Simmons and “shark” investor Mark Cuban have been the loudest cheerleaders for Memecoin in the past year. They amplified both the upside potential and the desire to own Memecoin.

Financial investment apps still attract money

2021 will also see an explosion of low-cost trading apps and financial investment apps, opening up a whole new land for global investors. In a short time, popular online trading apps like Robinhood have opened up opportunities for millions of stock investors, mainly young traders.

Free or low-fee stock trading and financial investment apps have become popular among self-managed (DIY) investors, leading to a wide range of trading platforms. new, creating an ecosystem as a basis for investment trends: from stock trading, to meme shares (stocks with shocking price increases and often with prices much higher than the current economic situation). business), virtual currencies, NFT (the only digital certificate registered in a blockchain), to decentralized finance (DeFi).

Users prefer free or low-fee trading apps because of their easy-to-use interface, no commissions, no minimum investment, and access to quick trades in seconds. This has attracted investment cash flows into virtual currencies as an investment asset.

Even thanks to those apps, even seemingly worthless Memecoins had happy days when investors accessed apps on smartphones and participated in the FOMO-induced frenzy of money decline. in pursuit of high returns like Bitcoin.

If you look at their development trajectory, low-cost trading apps are going nowhere. But if the global Covid-19 pandemic can’t crush the explosion of low-cost trading apps, it’s hard to refute the notion that 2022 will be another blockbuster year for apps. there.